Government

Adam Toras

Federal Government

Many people have wondered where does the federal government actually get there money from, where do they spend it, and how much it brings in from company’s. Right now our economy is in a giant crisis. People are starting to ask these questions once again because of the crisis. Is the reason we are in major debt because of the wars we are in or is it because we spend way too much money in Medicare and social security, or maybe we do not spend enough money in those things.

The federal government gets its money from the taxpayers. The taxpayers are the citizens of the United States of America. Over Ninety percent of revenues come from three types of major categories of taxes: individual taxes, corporate income taxes, and payroll taxes. Individual taxes are taxes that are put upon a person’s personal income. Corporate income taxes are taxes that are put upon a corporation. The corporation income tax is put only on people involved in corporations after there deductions are made. Payroll Income tax is the tax that is taken out of your payroll for Social Security, Medicare, and Medicaid. The government spends 869 billion dollars on payroll taxes, 1 trillion 165 billion on individual income taxes, 370 billion from corporation income tax, and 65 billion from excise taxes. That is a total of about 2.6 trillion dollars.

Many people often think where money goes that the federal government gets from the taxpayers. The government spent 375 billion on Medicare, 552 billion on national defense, 586 billion on social security, 237 billion on interest on debt, 196 billion on Medicaid, and they also spend money on other things like education, agriculture, veteran’s benefits and other smaller things. They spent a overall of 2.7 trillion dollars in 2007. That could be one reason the federal government is in debt right there because they spend more than they get.

If I were to make a bailout plan it would consist of the same tax rate that the...